Wolf Money(world market review 1-7 Nov 2021)

 

Chen Cheng Mei Singapore 1927-2020

Trading Room circa 1974

Gift of anonymous donor 

Collection of National Galllery Singapore 

Market Summary 1-7 Nov 2021

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+ Fed to start tapering the pace of its asset purchases later this mth; reduction of US$10bn less in Treasury and US$5bn less in mortgage-backed securities, from current US$120bn a mth buying

+ US House of Representatives passed US$1.2 trillion infrastructure bill, to vote on US$1.75 trillion social spending package before Nov 21 

+ US economy added 531,000 jobs in Oct, above forecast, unemployment rate fell to 4.6% 

+ US weekly jobless claims fell to fresh 19-mth low to seasonally adjusted 269,000 

- US trade deficit jumped to record high in Sept as exports slumped, gap surged 11.2% to record US$80.9bn 

- Biden to announce tougher regulations on methane emissions form oil and gas production 

- Powell said he expects conditions pushing inflation to last into next year, patient on raising interest rates 

- US unit labour costs surged in Q3, productivity declined at sharpest pace since 1981, signs that inflation could last for a while 

+ US dollar hit 1-year high after jobs data growth more than expected in Oct 

+ US services sector growth hit new record-high in Oct to 66.7 from 61.9 in Sept: ISM 

- US 2 senators introduced bipartisan legislation seeks to make it harder for tech giants to make acquisitions 

+ Pfizer said its Covid-19 pill reduced hospitalisations and deaths in high-risk patients by 89% 

+ US crude stockpile up 5th week in 6 as high prices keep refiner away: Energy Agency 

+ Boeing directors agree to US$237.5m proposed settlement with shareholders over 737 MAX safety oversight 

+ Merck says its working with China to bring in its Covid pill

+ NYC mayor-elect plans to have first 3 paychecks in Bitcoin, citing to make his city “centre of the cryptocurrency industry”

- Apple cuts iPad output by half in order to use semiconductor chips that currently in short supply 

+ Amazon seeks US approval to deploy 4500 additional satellites for broadband internet to areas that lack high-speed service 

+ Tesla to open Canada battery gear factory in Markham, Ontario

+ Uber reported first profitable qtr on adjusted basis since launched >10 years ago 

- GM will again halt production plant which makes Chevrolet Blot EV for 3 more weeks 

+ Delta Air Lines seen 450% surge in int’l bookings in 6 weeks since Sept 

+ Berkshire Hathaway net earnings down by 2/3 at US$10.34bn in Q3, cash pile hits record US$149bn 

+ BlackRock raised US$637m for climate-focused infrastructure fund with backing from Japanese, German, French govts 

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+ China will steadfastly advance high-level opening-up, share market opportunities with rest of the world: Xi 

+ China >2.6bn domestic trips were made in first 3 quarters, increase of 39.1% YoY, recovering to 58.5% of pre-pandemic levels 

+ Shandong Province reported discovery 485m tons of shale oil, and shale reserve of >4bn tons after pilot exploration: Sinopec 

+ China’s Oct exports likely remain strong on robust global demand, imports surged on energy demand: Reuters poll

+ Beijing stock market publishes draft rules for trading and membership management  

+ China’s foreign trade up by 22.2% YoY in first 10-mth 

+ China’s services sector expanded at faster pace in Oct, buoyed by robust demand: Caixin PMI

+ China to further shorten the negative list for foreign investment: Xi

+ China has fully vaccinated nearly 76% of population 

- China’s food prices climbed every week of Oct, some vegetable prices skyrocketed by >50% in Oct YoY

+ China mulls new mix of tax and fee reductions for small, micro-sized businesses 

+ China’s tax and fee cuts totalled US$142.25bn in first 3 quarters 

+ China contributed nearly 30% on average to world economic growth since joining WTO in 2001

+ Guangzhou, Shenzhen told to allocate at least 10% of land for affordable rental homes 

+ China-US inked largest long-term LNG deal to buy 4m tons annually for 20 years 

+ Xi vows to share development opportunities with world at 4th China Int’l Import Expo 

- Chinese airlines will reinstate fuel surcharge for domestic flights due to higher oil prices 

- China urged FCC to withdraw decision blocking its telecom from US market 

- China developer Kaisa and 3 of its units shares suspended, after a subsidiary had missed a payment on a wealth management product 

- Shanghai locked 30,000 visitors inside Disneyland for Covid test after 1 guest got Covid-19

- Taiwan will seek support for its bid to join trans-Pacific trade pact when it attends APEC meeting 

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- Global chip shortage could continue through 2023 and possibly later: GlobalFoundries CEO 

+ RCEP, world’s largest trade deal to take effect on Jan after 6 ASEAN members, China, Japan, NZ, Australia ratified the deal

- OPEC and allies decided to keep decreasing their collective oil output cuts by 400,000 bpd next mth 

+ Oil price to hit US$120 by June 2022: BofA

- Global food prices hit 10-year high, extending 30% increase record last year: FAO

- Squid Game crypto token plunged to almost US$0 after skyrocketing to US$2850 per coin in a day

- BOJ governor suggested in no mood to exit its massive monetary stimulus programme soon 

- Japan’s economy likely contracted in Q3 on weak consumption and output: Reuters poll 

+ Japan drone maker’s flying motorcycle to hit the skies in 2022 

+ Japan pledges extra US$10bn of overseas climate financing 

- Japanese carmakers’ Chinese sales tumble in Oct again due to microchip shortage 

+ SoftBank to test wireless charging tech 

+ Russia-China trade turnovers expects to reach US$130bn in 2021 to all time high

+ Russia almost doubled its electricity exports to China since Nov 2 to help overcome energy crisis 

+ Russia exports of agricultural machinery soar to record high on demand from EU and CIS 

- Nord Stream 2 may need few more mths to clear remaining red tape from easing Europe’s gas woes  

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+ ECB policymakers push back rate hike bets, expects inflation to fall next year 

+ Euro zone producer prices make record jump in Sept, driven by energy cost 

+ ECB is aware of ppl’s fears about high inflation but very unlikely to raise interest rates next year: board member 

- ECB can’t yield digital money space to private sector as it could endanger financial stability, weaken role of central bank 

+ European Commission ready to support EU nations opting to develop nuclear energy

+ Europe-China freight trains reached 11,343 trips fist 9 mths of 2021, up 29% 

+ Airbus plans to expand capability of assembly line in Tianjin amid growing focus on Chinese market 

- German industrial production continues negative trend in Sept, down by 1.1% MoM 

- German BioNTech share plunged 20% on news of whistle-blower report and new Covid pills 

+ BoE kept interest rates on hold, dashing investors’ expectations for a hike 

+ UK becomes the first country to approve Merck’s Covid-19 pill

- France President Macron to address nation next week amid Covid-19 rebounded above 10,000 daily this mth in the country 

+ France will invest €1.8bn in the country’s cloud computing industry by 2025: Minister 

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+ Australia’s resources and energy sector on target for another record year of exports: Minister 

+ Australia-UK confident of free trade agreement by year end 

+ NZ says it will halve greenhouse emission by 2030

+ India-China trade likely to exceed US$100bn in 2021 

+ India targets net zero emissions by 2070

- Samsung and SK Hynix plan to omit detailed data related to global chip shortage to US request 

- Samsung family prepares to pay US$10bn inheritance tax on Lee Hun-hee wealth 

- Saudi Aramco increased official selling price of crude to Asian and US buyers 

+ Qatar orders 6 LNG vessels to expand exports 

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+ Indonesia economy grew 3.51% in Q3 YoY vs previous quarter’s 7.07% expansion, boosted by strong exports 

+ Indonesia HIS Markit PMI rose to 57.2 in Oct, up for 2nd straight mth 

+ Indonesia eyes US$32bn business deals after Jokowi’s UAE visit 

+ Indonesia took over land assets linked to automaker firm owned by the son of late president Suharto after defaulting on loans 

- Indonesian Muslim clerics classify cyrptocurrencies as ‘un-Islamic’

+ Thailand no Nov 1 officially opened to vaccinated tourists and visitors from 63 countries 

- Thailand lorry drivers to resume protest against high diesel prices Nov 16

+ Vietnam expects to achieve up to 6.5% growth in 2022 

+ Vietnam automaker VinFast will make >US$200m capital investments in US to expand operation in North America 

+ Philippines digital payment provider Globe Fintech Innovations becomes country’s first fintech unicorn 

+ Laos govt approved 6 firms to pursue trial programme to mine and trade cryptocurrency

+ Malaysia PM will discuss development at Sabah Kalimantan border with Indonesian President Jokowi 

+ Malaysia-Australia discussed possibility of reopening borders 

- Malaysia ringgit is the cheapest among Asia ex-Japan currencies followed by Indonesian rupiah, stand to benefit most form rising commodity prices: DBS Bank 

+ Sg PMI stays flat at 50.8 in Oct after 2 mths of slowdown 

+ Sg property stamp duty collection jumps to S$3.2bn; corporate, income taxes race past pre-Covid levels 

+ Sg retail sales rise 6.6% in Sept, following strong showing from computer and telecommunications industry 

- MAS mulls over need to tighten controls on illicit financial flows flowing Pandora Papers 

+ MAS seeks view on classification of complete products, including perps 

+ MAS sees significant economic possibilities from crypto or tokenised economy can make ross-border payments cheaper, transform the way hard physical assets are traded: MAS 

+ MAS discussed with Indonesia and Philippines to link up their real-time payment systems  

+ Energy Market Authority (EMA) must be given option to step in, provide critical infrastructure and services need to ensure proper functioning of energy sector: Minister 

- Sg 9 electricity retailers remain in the Open Electricity Market following exit of 5 players 

+ Sg Penthouse at Les Maisons Nassim sold for S$75m or S$6210 psf 

+ Sg to phase out the use of unabated coal in its electricity mix by 2050 

+Sg new businesses set up outnumbered those that closed down last 2 years  despite Covid-19  

+ HDB resale prices hit new high with 0.9% increase in Oct 

+ DBS plans to open crypto exchange to retail market 

+ UOB will introduce buy-now-pay-later (BNPL) feature in Indonesia soon 

Contribution by Derek@valueinvestments chat group. Thank you.

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